General Motors was founded in 1908 and has been the largest manufacturer, designer, building and marketer of cars and trucks throughout the world since 1921. It sells vehicles in more than 200 countries worldwide and maintains assembly, manufacturing, distribution or warehousing operations in 53 of these countries. In 2000, it sold 8.6 million cars and trucks - constituting 15.1% of the entire world vehicle market (the world's biggest share) at $4.5 billion net sales and $184.6 billion in revenues. (General Motors). It envisions itself as the enduring world leader in transportation products and related services, whose goal is "to maintain this position through enlightened customer enthusiasm and continuous improvement, driven by the integrity, team work and innovation" of its employees. (General Motors)
The organization operates in four regions. The first, which has the largest market at 27%, is the GM North America. This region designs, manufactures and markets vehicles for the U.S., Canadian, Mexican, Central American, Puerto Rican and Caribbean markets. Brands that sell in this region are Buick, Cadillac, Chevrolet, GMC, Hummer, Oldsmobile, Pontiac, Saab and Saturn. The second is GM Europe, with headquarters in Zurich, Switzerland, and has a 9.3% market share. It designs, manufacturers and markets vehicles for the European market (General Motors), such as the Open, Vauxhall, Saab, Cadillac, and Chevrolet brands. The third is GM Latin America, Africa and Mid-East, which has a 16.3% market share and maintains headquarters in Florida, USA. It also manufactures and sells vehicles for and to the said markets, such as the Cadillac, Chevrolet, GMC, Isuzu, Open and Saab brands. And the fourth is the GM Asia Pacific with a 3.7% market share. Its headquarters are in Ngee Ann City in Singapore. Most popular brands there are Holden, Isuzu, Opel, Chevrolet, Buick, Cadillac, Saab and Saturn. The company employs 386,000 in all its regions. (General Motors)
In 2001, it set world records by selling more than 1 million SUVs and more full-sized pickup trucks than any other manufacturer since 1978. (General Motors) It also operates the GMAC, which offers automotive, mortgage and business financing and insurance services to customers the world over. This financing arm is now one of the world's largest and most successful in the field. Its subsidiaries are Hughes Electronics Corporation, GM Locomotive Group and Allison Transmission Division, and maintains major alliances with Fiat Auto SpA, Fuji Heavy Industris Ltd., Isuzu Motors Ltd. And Suzuki Motor Corporation. It keeps strong technology collaboration with Toyota Motor Corporation, Honda Motor Company and ventures with Toyota and Renault SA. (General Motors)
General Motors basis its sustainability efforts on its four cultural priorities that guide and describe the conduct of its business, especially in the 21st century. These priorities are acting as one company and leveraging its total and tremendous global capabilities within the company and in its global links; embracing stretch targets and striving to achieve the best; moving with a sense of urgency and working to accelerate and using speed to advantage; and enhancing product and customer focus in building long-term relationships with customers by providing the products, services and corporate practices they demand. (General Motors)
But General Motors was in deep financial trouble a year ago, from which it has yet to rise. Its earnings fell by a huge 88% mainly because of "economic downturn, pricing pressures, and continuing losses from (its European) operations." (McCafferty 2001) In this year's first quarter, General Motors achieved a poor 2% while its competitor, Ford, made 20%, equalling GMs earnings but making profit four times. (McCafferty) Ford had smaller production cuts and sold more in Europe.
Though 1999 and 2000 were two of GM's best years in its history, these were also the bleakest. Its domestic market went low and buyers turned their backs on its dull and unimaginative cars and trucks. GM has an overcapacity which erodes profits and with little recourse to draw it down. (McCafferty) It lost $676 million in Europe in 2000.and would not even break even in 2001. Right at home, vehicle owners[complaints fill up the list, ranging from transmission malfunctioning or poor service, gasket leaks, paint falling off, tahoe metallic humming after the vehicle warms up and ignition key problems. Furthermore, its financing arm, GMAC, went into high debt levels and ratings agencies are contemplating on downgrading.
The problem of overcapacity is more palpable in Europe and competition there has turned stiffer and more ferocious. It has been said that the main problem for GM was that competing automakers, such as Volkswagen, Peugeot and Renault, banded together. GM also lost to diesel...
" (Walker, 1999) the gas crisis caused that particular market sector to almost completely vanish, and the need for increased efficiency shifted power in the automotive industry away from designers and into the hands of engineers. Detroit tried one last time to introduce small cars to the American public, but this attempt was far less successful than all others before it. GM created the Chevrolet Vega, and Ford had the
Then, when the automobile replaced the horse and buggy, they had to change in order to remain competitive. This meant that they would build many of the bodies used in the automobile industry. To this day, any Cadillac that is manufactured has a body that was constructed by Fisher. (Glaser, 2001) Had managers and executives not realized this fact, the company would have changed to late. Those who embrace
Where, the benchmarks will show if the system is helping or hindering the company from achieving its objectives. This is significant, because when it is used in conjunction with flexibility, you can be able to effectively adapt to changes in the markets. With flexibility providing the necessary ingredients to implement such changes, while the use of benchmarks will identify when a management system is becoming unproductive. (Ireland, 2008, pp.
" (2003) the police force from this view was held as "ideal for exerting order across the vast territories of Canada, whose sheer scale made law enforcement, public administration and the assertion of sovereignty difficult." (Newburn, 2003) the police force in this area was known as the "North-West Mounted Police" whose influence extended early [in the] twentieth century...taking on security and counterespionage services during the First World War and, in
Geography The site of the North American Manufacturing Belt (hereafter, the "rustbelt,") is a geographical area that is generally bordered by the area south of the Great Lakes and north of the Ohio River; and usually east of the Mississippi River and west of the Atlantic Seaboard. The rustbelt includes the states of Illinois, Indiana, Ohio, Michigan, Pennsylvania, southern New York, and New Jersey. The Ohio River provides interior navigation to
Some of the biggest incentives for manufactures are the outrageously low tax bases in southern states. "When taxes are paid, southern levies are lower than most Northern states. GM's Hamtramck, MIG, plant, for instance, has one of the highest property tax mileages in the United States at 88 mills." (Corbett, 2002) Taxes are some much lower than in say Michigan or New Jersey and southern state officials are very open
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now